QUESTION 5 (20 Marks) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. INFORMATION The following information relates to two capital expenditure projects. Because of capital rationing, only one project can be chosen. The company estimates that its cost of capital is 12%. Ignore taxes. APPENDIX 1 Present value of RI: PVFA (k,n)= (1+x)n1k1(1+x)n1 APPENDIX 2 Present value of a regular annuity of RI per period for a perieds : PVFA (k,m)= i=1(1+k)21